CPA Advice For Homer Simpson Homer Simpson Research Paper

PAGES
2
WORDS
454
Cite
Related Topics:

CPA Advice for Homer Simpson Homer Simpson

FROM: CPA & Associates

Economic Substance and Moe's Business Plan

Mr. Simpson:

I appreciate your contact regarding economic substance and my recommendations as to if you should enter Moe's business plan. With such a large amount of cash taxed on your latest success, it is only obvious that you would want to protect and profit off of what remains. However, one must do so in good ethical standing. The rest of this memorandum serves the purpose of educating you into making the proper decision for yourself.

First and foremost, before entering any business transaction, one must understand the definition of "economic substance," which defined by the United States Treasury...

...

In other words, there is protection against those that are purposely avoiding paying taxes. In order to lawfully enter this business venture with Moe, the IRS claims that the transaction should be relevant other than in the purpose of economic substance, the transaction changes in a meaningful way, and that the taxpayer have substantial purpose other than economically benefitting from the transaction.
Economic profit laws fight against tax evasion even when on paper the transaction looks…

Sources Used in Documents:

The federal government has been tightening the laws about unethical profit for some time now. You may recall Martha Stewart's insider-trading scandal, or the accounting fraud of Enron that resulted in the Sarbanes-Oxley Act of 2002. Though both do not directly relate to your situation, it is clear that one should not attempt to fool the United States government. Once in court, Martha Stewart and the accounting staff of Enron were found guilty. Martha Stewart was convicted of conspiracy and served time in jail, while guilty Enron staff served jail time for fraud.

It is to my recommendation that you receive the advice of your wife as more justified than the advice of Moe. Unethically selling an investment in time for a large reported loss will surely trigger a red flag to the IRS, and your defense will be weak. On top of this, every business venture has some risk, so returns are not even guaranteed, and thus might not end up in your favor anyways.

Please do not hesitate to contact us if you have further questions.


Cite this Document:

"CPA Advice For Homer Simpson Homer Simpson" (2011, October 29) Retrieved June 24, 2024, from
https://www.paperdue.com/essay/cpa-advice-for-homer-simpson-homer-simpson-46965

"CPA Advice For Homer Simpson Homer Simpson" 29 October 2011. Web.24 June. 2024. <
https://www.paperdue.com/essay/cpa-advice-for-homer-simpson-homer-simpson-46965>

"CPA Advice For Homer Simpson Homer Simpson", 29 October 2011, Accessed.24 June. 2024,
https://www.paperdue.com/essay/cpa-advice-for-homer-simpson-homer-simpson-46965

Related Documents
Martha Stewart
PAGES 2 WORDS 580

Martha Inc. The Incredible Story of Martha Stewart Living Omnimedia Purpose Statement: There are four management principles found in Christopher Byron's Martha Inc.: The Incredible story of Martha Stewart Living Omnimedia. Main Point: Future managers can obtain success through hard work, determination and understanding marketing and management principles, but all these qualities must be balanced with respect for coworkers, partners and subordinates. Subpoint- Knowing the market, created a niche and recognizing opportunities are

The 'Martha Loyalist' perspective This perspective is advocated by fans of Stewart, who see her as unjustly accused, and are sympathetic to her cause, and logged on frequently to her Internet blog that she updated during the trial and from prison. The 'I don't care' perspective These people are not Martha defenders, but like Martha's sheets and recipes. They feel that these products will still be just as good as they were before

Since Martha had been capable of cheating, others would probably be too. 3. Training programs The training programs to be designed for Martha Stewart Living Omnimedia ought to include technical trainings that assist employees in improving their on job skills. The trainings should include all employees and should be differentiated based on the work areas and positions occupied within the company. Furthermore, aside from trainings, the management should present the workers

Stewart and Bacanovic were convicted. But for others there are still many questions about the case and the motivations of the prosecutors. Paul Craig Roberts (2004) believes the prosecutor criminalized Stewart's exercise of her constitutional right to declare her innocence. Claiming it constituted fraud for her to declare her innocence. Nancy Shaw (2003) offers the opinion that the prosecutors charged Stewart with lying about a crime they cannot prove she committed.

Martha Stewart Living Omnimedia Company Overview For a time, Martha Stewart and her company, Martha Stewart Living Omnimedia (trading on the New York Stock Exchange as MSO) was best known for the brief imprisonment of its founder, namesake, and very public face due to insider trading convictions (Yahoo 2011; Brown & Rhodes 2011). Both Stewart and her company have more than rebounded form this debacle, however, and the long and almost entirely

Martha Stewart Too Much of a Good Thing?: A Quantitative Analysis of Martha Stewart Living Omnimedia Martha Stewart and her business endeavors have come a very long way since the cooking, crafting, and home makeover maven attended a stock brokerage class and earned her trading license in 1968 (O'Rourke 2007). The fact that Stewart even had a brokerage license might seem some what ironic in light of the insider trading scandal and